Bean Option Recap From Jon Karmin

Posted on Thursday, October 23rd, 2014 at 2:53 pm.

We go as the meal goes. It is pure and simple. The shorts in this market have taken it on the chin. With an enormous crop coming in but slightly later than expected we had a near perfect squeeze where processors cannot fill the meal pipeline demands. Every trader of any worth that I’ve been talking to did not see this coming and that’s probably exactly why it did. The record shorts could only take so much pain and the squeeze was executed to perfection. It will be very interesting to see how the market reacts when pipeline demands are met in the very near future. SZ vol 25.5 up 1.25, SF vol 23.5 up .75,